UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): February 21, 2012
THE HOME DEPOT, INC.
(Exact Name of Registrant as Specified in Charter)
Delaware | 1-8207 | 95-3261426 | ||
(State or Other Jurisdiction of Incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
2455 Paces Ferry Road, N.W., Atlanta, Georgia 30339
(Address of Principal Executive Offices) (Zip Code)
(770) 433-8211
(Registrants Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. | Results of Operations and Financial Condition. |
On February 21, 2012, The Home Depot, Inc. (the Company) issued a press release, attached as Exhibit 99.1 and incorporated herein by reference, announcing the Companys financial results for the fiscal year and quarter ended January 29, 2012.
The information contained in this report, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of Section 18. Furthermore, the information contained in this report shall not be deemed to be incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended.
Item 9.01. | Financial Statements and Exhibits. |
Exhibit |
Description | |
99.1 | Press Release of The Home Depot, Inc. |
2
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
THE HOME DEPOT, INC. | ||
By: | /s/ Carol B. Tomé | |
Name: | Carol B. Tomé | |
Title: | Chief Financial Officer and Executive Vice President Corporate Services |
Date: February 20, 2012
3
EXHIBIT INDEX
Exhibit |
Description | |
99.1 | Press Release of The Home Depot, Inc. |
4
Exhibit 99.1
THE HOME DEPOT ANNOUNCES FOURTH QUARTER AND FISCAL 2011 RESULTS;
PROVIDES FISCAL YEAR 2012 GUIDANCE
ATLANTA, February 21, 2012 The Home Depot®, the worlds largest home improvement retailer, today reported sales of $16.0 billion for the fourth quarter of fiscal 2011, a 5.9 percent increase from the fourth quarter of fiscal 2010. Comparable store sales for the fourth quarter of fiscal 2011 were positive 5.7 percent, and comp sales for U.S. stores were positive 6.1 percent.
Net earnings for the fourth quarter were $774 million, or $0.50 per diluted share, compared with net earnings of $587 million, or $0.36 per diluted share, in the same period of fiscal 2010. For the fourth quarter of fiscal 2011, diluted earnings per share increased 38.9 percent from the prior year.
Fiscal 2011
Sales for fiscal 2011 were $70.4 billion, an increase of 3.5 percent from fiscal 2010. Total company comparable store sales for the year increased 3.4 percent, and comp sales for U.S. stores were positive 3.0 percent for the year.
Earnings per diluted share in fiscal 2011 were $2.47, compared to $2.01 per diluted share in fiscal 2010, an increase of 22.9 percent.
We had a strong finish to 2011, and with favorable weather, our business delivered results that exceeded our expectations, said Frank Blake, chairman & CEO. Id like to thank our associates for their hard work and dedication.
Fiscal 2012 Guidance
The Company will have 53 weeks of operating results in fiscal 2012 and provided the following guidance for fiscal 2012:
| Sales growth of approximately 4 percent including the 53rd week |
| 53rd week projected to add approximately $1 billion to total sales |
| Low single-digit comparable store sales growth for the period |
| 11 new stores |
| Moderate gross margin expansion |
| Operating margin expansion of approximately 50 basis points |
| Tax rate of approximately 37% |
| 53rd week expected to contribute approximately 3 cents of diluted earnings per share |
| 53-week diluted earnings-per-share growth before share repurchases of approximately 10 percent to $2.72 |
| 53-week diluted earnings-per-share growth after anticipated share repurchases of approximately 13 percent to $2.79 |
- more -
-2-
| Capital spending of approximately $1.325 billion |
| Depreciation and amortization expense of approximately $1.65 billion |
| Cash flow from the business of approximately $6.6 billion |
| Share repurchases of approximately $3.5 billion |
The Home Depot will conduct a conference call today at 9 a.m. ET to discuss information included in this news release and related matters. The conference call will be available in its entirety through a webcast and replay at earnings.homedepot.com.
At the end of the fourth quarter, the Company operated a total of 2,252 retail stores in all 50 states, the District of Columbia, Puerto Rico, U.S. Virgin Islands, Guam, 10 Canadian provinces, Mexico and China. The Company employs more than 300,000 associates. The Home Depots stock is traded on the New York Stock Exchange (NYSE: HD) and is included in the Dow Jones industrial average and Standard & Poors 500 index.
###
Certain statements contained herein constitute forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements may relate to, among other things, the demand for our products and services, net sales growth, comparable store sales, state of the economy, state of the residential construction, housing and home improvement markets, state of the credit markets, including mortgages, home equity loans and consumer credit, inventory and in-stock positions, commodity price inflation and deflation, implementation of store and supply chain initiatives, continuation of reinvestment plans, net earnings performance, earnings per share, stock-based compensation expense, capital allocation and expenditures, liquidity, the effect of adopting certain accounting standards, return on invested capital, management of our purchasing or customer credit policies, the effect of accounting charges, the planned recapitalization of the Company and the timing of its completion, the ability to issue debt on terms and at rates acceptable to us, store openings and closures, expense leverage, guidance for fiscal 2012 and financial outlook. Forward-looking statements are based on currently available information and our current assumptions, expectations and projections about future events. You should not rely on our forward-looking statements. These statements are not guarantees of future performance and are subject to future events, risks and uncertainties many of which are beyond our control or are currently unknown to us as well as potentially inaccurate assumptions that could cause actual results to differ materially from our expectations and projections. These risks and uncertainties include but are not limited to those described in Item 1A, Risk Factors, and elsewhere in our Annual Report on Form 10-K for our fiscal year ended January 30, 2011.
Forward-looking statements speak only as of the date they are made, and we do not undertake to update these statements other than as required by law. You are advised, however, to review any further disclosures we make on related subjects in our periodic filings with the Securities and Exchange Commission.
For more information, contact:
Financial Community | News Media | |
Diane Dayhoff |
Paula Drake | |
Vice President of Investor Relations |
Senior Manager of Corporate Communications | |
770-384-2666 |
770-384-3439 | |
diane_dayhoff@homedepot.com |
paula_drake@homedepot.com |
THE HOME DEPOT, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE THREE MONTHS AND FISCAL YEARS ENDED JANUARY 29, 2012 AND JANUARY 30, 2011
(Unaudited)
(Amounts in Millions Except Per Share Data and as Otherwise Noted)
Three Months Ended | %
Increase (Decrease) |
Fiscal Year Ended | %
Increase (Decrease) |
|||||||||||||||||||||
1-29-12 | 1-30-11 | 1-29-12 | 1-30-11 | |||||||||||||||||||||
NET SALES |
$ | 16,014 | $ | 15,126 | 5.9 | % | $ | 70,395 | $ | 67,997 | 3.5 | % | ||||||||||||
Cost of Sales |
10,417 | 9,883 | 5.4 | 46,133 | 44,693 | 3.2 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
GROSS PROFIT |
5,597 | 5,243 | 6.8 | 24,262 | 23,304 | 4.1 | ||||||||||||||||||
Operating Expenses: |
||||||||||||||||||||||||
Selling, General and Administrative |
3,877 | 3,807 | 1.8 | 16,028 | 15,849 | 1.1 | ||||||||||||||||||
Depreciation and Amortization |
390 | 399 | (2.3 | ) | 1,573 | 1,616 | (2.7 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Total Operating Expenses |
4,267 | 4,206 | 1.5 | 17,601 | 17,465 | 0.8 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
OPERATING INCOME |
1,330 | 1,037 | 28.3 | 6,661 | 5,839 | 14.1 | ||||||||||||||||||
Interest and Other (Income) Expense: |
||||||||||||||||||||||||
Interest and Investment Income |
(4 | ) | (4 | ) | | (13 | ) | (15 | ) | (13.3 | ) | |||||||||||||
Interest Expense |
154 | 91 | 69.2 | 606 | 530 | 14.3 | ||||||||||||||||||
Other |
| | | | 51 | (100.0 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Interest and Other, net |
150 | 87 | 72.4 | 593 | 566 | 4.8 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
EARNINGS BEFORE PROVISION FOR INCOME TAXES |
1,180 | 950 | 24.2 | 6,068 | 5,273 | 15.1 | ||||||||||||||||||
Provision for Income Taxes |
406 | 363 | 11.8 | 2,185 | 1,935 | 12.9 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
NET EARNINGS |
$ | 774 | $ | 587 | 31.9 | % | $ | 3,883 | $ | 3,338 | 16.3 | % | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Weighted Average Common Shares |
1,525 | 1,614 | (5.5 | )% | 1,562 | 1,648 | (5.2 | )% | ||||||||||||||||
BASIC EARNINGS PER SHARE |
$ | 0.51 | $ | 0.36 | 41.7 | $ | 2.49 | $ | 2.03 | 22.7 | ||||||||||||||
Diluted Weighted Average Common Shares |
1,535 | 1,626 | (5.6 | )% | 1,570 | 1,658 | (5.3 | )% | ||||||||||||||||
DILUTED EARNINGS PER SHARE |
$ | 0.50 | $ | 0.36 | 38.9 | $ | 2.47 | $ | 2.01 | 22.9 | ||||||||||||||
Three Months Ended | %
Increase (Decrease) |
Fiscal Year Ended | %
Increase (Decrease) |
|||||||||||||||||||||
SELECTED HIGHLIGHTS |
1-29-12 | 1-30-11 | 1-29-12 | 1-30-11 | ||||||||||||||||||||
Number of Customer Transactions |
303.0 | 292.4 | 3.6 | % | 1,317.5 | 1,305.7 | 0.9 | % | ||||||||||||||||
Average Ticket (actual) |
$ | 52.54 | $ | 51.31 | 2.4 | $ | 53.28 | $ | 51.93 | 2.6 | ||||||||||||||
Weighted Average Weekly Sales |
$ | 544 | $ | 514 | 5.8 | $ | 601 | $ | 581 | 3.4 | ||||||||||||||
Square Footage at End of Period |
235 | 235 | | 235 | 235 | | ||||||||||||||||||
Capital Expenditures |
$ | 401 | $ | 407 | (1.5 | ) | $ | 1,221 | $ | 1,096 | 11.4 | |||||||||||||
Depreciation and Amortization(1) |
$ | 417 | $ | 426 | (2.1 | )% | $ | 1,682 | $ | 1,718 | (2.1 | )% |
(1) | Includes depreciation of distribution centers and tool rental equipment included in Cost of Sales and amortization of deferred financing costs included in Interest Expense. |
THE HOME DEPOT, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AS OF JANUARY 29, 2012 AND JANUARY 30, 2011
(Unaudited)
(Amounts in Millions)
1-29-12 | 1-30-11 | |||||||
ASSETS |
||||||||
Cash and Cash Equivalents |
$ | 1,987 | $ | 545 | ||||
Receivables, net |
1,245 | 1,085 | ||||||
Merchandise Inventories |
10,325 | 10,625 | ||||||
Other Current Assets |
963 | 1,224 | ||||||
|
|
|
|
|||||
Total Current Assets |
14,520 | 13,479 | ||||||
|
|
|
|
|||||
Property and Equipment, net |
24,448 | 25,060 | ||||||
Goodwill |
1,120 | 1,187 | ||||||
Other Assets |
430 | 399 | ||||||
|
|
|
|
|||||
TOTAL ASSETS |
$ | 40,518 | $ | 40,125 | ||||
|
|
|
|
|||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
Accounts Payable |
$ | 4,856 | $ | 4,717 | ||||
Accrued Salaries and Related Expenses |
1,372 | 1,290 | ||||||
Current Installments of Long-Term Debt |
30 | 1,042 | ||||||
Other Current Liabilities |
3,118 | 3,073 | ||||||
|
|
|
|
|||||
Total Current Liabilities |
9,376 | 10,122 | ||||||
|
|
|
|
|||||
Long-Term Debt |
10,758 | 8,707 | ||||||
Other Long-Term Liabilities |
2,486 | 2,407 | ||||||
|
|
|
|
|||||
Total Liabilities |
22,620 | 21,236 | ||||||
|
|
|
|
|||||
Total Stockholders Equity |
17,898 | 18,889 | ||||||
|
|
|
|
|||||
TOTAL LIABILITIES AND STOCKHOLDERS EQUITY |
$ | 40,518 | $ | 40,125 | ||||
|
|
|
|
THE HOME DEPOT, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR FISCAL YEARS ENDED JANUARY 29, 2012 AND JANUARY 30, 2011
(Unaudited)
(Amounts in Millions)
Fiscal Year Ended | ||||||||
1-29-12 | 1-30-11 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||
Net Earnings |
$ | 3,883 | $ | 3,338 | ||||
Reconciliation of Net Earnings to Net Cash Provided by Operating Activities: |
||||||||
Depreciation and Amortization |
1,682 | 1,718 | ||||||
Stock-Based Compensation Expense |
215 | 214 | ||||||
Changes in Working Capital and Other |
871 | (685 | ) | |||||
|
|
|
|
|||||
Net Cash Provided by Operating Activities |
6,651 | 4,585 | ||||||
|
|
|
|
|||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||||
Capital Expenditures |
(1,221 | ) | (1,096 | ) | ||||
Proceeds from Sale of Business, net |
101 | | ||||||
Payments for Business Acquired, net |
(65 | ) | | |||||
Proceeds from Sales of Property and Equipment |
56 | 84 | ||||||
|
|
|
|
|||||
Net Cash Used in Investing Activities |
(1,129 | ) | (1,012 | ) | ||||
|
|
|
|
|||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||||
Proceeds from Long-Term Borrowings, net of discount |
1,994 | 998 | ||||||
Repayments of Long-Term Debt |
(1,028 | ) | (1,029 | ) | ||||
Repurchases of Common Stock |
(3,470 | ) | (2,608 | ) | ||||
Cash Dividends Paid to Stockholders |
(1,632 | ) | (1,569 | ) | ||||
Other |
88 | (243 | ) | |||||
|
|
|
|
|||||
Net Cash Used in Financing Activities |
(4,048 | ) | (4,451 | ) | ||||
|
|
|
|
|||||
Change in Cash and Cash Equivalents |
1,474 | (878 | ) | |||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents |
(32 | ) | 2 | |||||
Cash and Cash Equivalents at the Beginning of the Period |
545 | 1,421 | ||||||
|
|
|
|
|||||
Cash and Cash Equivalents at the End of the Period |
$ | 1,987 | $ | 545 | ||||
|
|
|
|
#H_%>K7NC-97=Q%<#3
MENYTL8+:\BF!AT]HPEQY<(C$CR;W+=_P'$<89GE=3-,AR?,I4LEHYEBJ^$E%
MO2DJLZ<*<))Z4VOWD8KW=59'[MA>$